Rachel Reeves tax raids cause surge in millionaires fleeing to tax haven just 100 miles away from UK

Property specialists on the island say interest from prospective British relocators has surged in recent months as concerns grow over inheritance tax changes and the wider direction of Labour policy.

Orry-James Creane, managing director of Cowley Groves estate agency, revealed that enquiries for homes worth more than £1million from UK-based buyers considering a move now account for at least half of all such requests.

He said this represented more than double the level recorded 18 months ago.

"Prior to last year, that was unheard of," Mr Creane said, adding that changes to inheritance tax rules were the issue most frequently raised by those exploring a move to the island.

UK buyers have recently purchased a number of multimillion-pound properties in the Isle of Man, according to local agents.

Since taking office, Chancellor Rachel Reeves has announced a series of measures that have prompted concern among some of Britain's wealthiest residents.

Wealthy Britons flee UK for tax haven as Isle of Man interest soars

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Pensions are due to become subject to inheritance tax, while homeowners with properties valued at £2million or above face additional tax liabilities.

The Chancellor has also introduced higher tax rates on property income and dividend payments.

Her decision to abolish non-domiciled tax status has proved particularly controversial among internationally mobile entrepreneurs.

Reliefs previously available to farmers and business owners have also been reduced, while capital gains tax rates have increased.

The Isle of Man's tax regime offers a markedly different proposition to that available on the British mainland

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Property professionals say these cumulative changes, alongside existing stamp duty costs and uncertainty surrounding possible future tax measures, have encouraged some wealthy individuals to investigate alternatives outside the UK.

The island's higher rate of income tax is 20 per cent, compared with 40 per cent for equivalent earners in the UK.

Personal income tax liabilities are also capped at £220,000 a year for individuals.

Mr Creane said these benefits had attracted increasing attention from entrepreneurs and business owners.

"The most recent changes made by the Labour Government have forced them to assess what alternative jurisdictions offer them," he said.

Data published by wealth manager Rathbones in February found that almost 6,000 founders of high-growth businesses had left the UK over the previous two years.

The company said the figures highlighted growing unease over the Government's approach to taxation.

Andrew Wallis, a valuer at Black Grace Cowley estate agents, said the Isle of Man had experienced "unusually high levels of interest from UK-based purchasers relocating".

"It's buoyant for all agents on the island," Mr Wallis said, adding that lower crime levels and demand for skilled workers were among the factors attracting new residents.

Tyson Fury's move to the island is expected to save him millions of pounds in tax

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Becky Fatemi, executive partner at Sotheby's International Realty, said business owners and senior executives were increasingly "willing to explore jurisdictions offering a more competitive tax environment".

Among those to have moved to the island is boxer Tyson Fury, who relocated to an £8million estate after home invasions at his Morecambe property, in a move expected to save him millions of pounds in tax.

Katie Neale, a buying agent at Haringtons UK, said the Isle of Man featured in conversations with clients "far more than it used to".

Philip Harvey of Property Vision said there had been a wider trend towards relocations to nearby low-tax jurisdictions, including Jersey and Guernsey.

"So they're trying to find territories closer to home that are more tax-friendly," he said.